Condominium insurance is home insurance designed specifically for condominiums. provides protection for your unit and belongings from theft, vandalism, water damage, fire damage, and many other risks.
In many ways, condo insurance and traditional single-family homeowners insurance are similar. Like homeowners insurance, a condo policy covers:
Reading: How much condo insurance cost
- Building Ownership – This covers any part of the building for which you are responsible.
- personal property: This covers your possessions, including furniture, clothing, electronics, and jewelry.
- Personal Liability – This protects you from lawsuits that can result from things like injuries to your property or other negligence claims.
- $40,000 in personal property: $56 a month
- $60,000 in personal property: $63 a month
- $80,000 in personal property:$70 a month
- $100,000 in personal property: $77 per month
- bare walls arrangement. This generally means that individual unit owners are responsible for securing their unit against drywall or wall studs. that means covering things like walls, sinks, cabinets, appliances, flooring, and wallpaper. Owners must also insure any renovations and improvements they make.
- single entity. In this type of coverage, the condominium association’s master insurance policy provides protection for almost everything in the complex, including your unit and the fixtures within it. condo owners are only responsible for insuring their personal belongings. however, updates you make to your drive are not covered in the event of loss.
- all-inclusive agreement. This is similar to a single entity plan, except the condo association’s master policy also covers any improvements, upgrades, and additions you make to the unit. it is the most comprehensive form of coverage from the unit owner’s perspective.
- construction costs in your area
- the type of materials used in your condo
- the value of your personal belongings
- all inclusive and all inclusive
- special entity
- bare walls inside and wall studs inside
- You only need to get personal property and liability coverage.
- calculate the total cost of all your belongings and choose a matching amount of personal property, at replacement value, to have your items reimbursed without depreciation.
- Liability coverage, which helps pay legal costs if you’re sued and pays medical bills for guests injured in your home, should have limits of at least $100,000, but $300,000 is recommended. you want enough liability coverage to ensure all of your savings and assets are protected.
- It is common for mortgage lenders to require a percentage of your loan as the amount of coverage for the building property. So, for example, if your condo loan is $300,000 and the lender requires 20% building property coverage, it would be $60,000.
- You can also try multiplying the square footage of your unit by the cost to rebuild it. This can be done by researching the cost per square foot in your area or similar units and asking appraisers or contractors. A rough estimate as an example: If your condo is 1,200 square feet and the national average construction cost of $125 per square foot is applied, you’ll get 150,000, so you’ll get $150,000 in construction property coverage.
- check your master policy to see if it’s all-in, bare walls, or a single entity.
- determine the liability coverage you need.
- calculate the value of your personal property and see if you need floats to provide additional coverage for specific items.
- determine the amount of building property coverage if the master policy is not all-inclusive.
- choose replacement value or actual cash value refund.
- Decide if you want flood, earthquake, or sewer overflow coverage.
- verify your condo documents and add additional master policy deductible and special assessment coverage if necessary.
- Make a list of the coverage you need and shop among competing providers. remember to ask about discounts.
However, there are key differences between a homeowners policy, or ho-3, and condo insurance, or ho-6. these differences affect the price you pay.
In this guide, we’ll provide average condo insurance costs by ZIP code, coverage level, and state, explain how H0-6 insurance works, and provide advice on how much coverage to buy.
how much does condo insurance (ho-6) cost?
The average cost of condo insurance is $759 nationwide, according to the most recent data from insurance.com. that rate is $60,000 in personal property coverage, with a $1,000 deductible and $300,000 in liability protection.
The condo insurance calculator below offers more coverage options for you to compare. The particular cost of your H0-6 condo insurance will depend on your coverage limits and deductible, and the value of your possessions, among other factors.
Is condo insurance cheaper than home insurance?
Condo insurance is cheaper than homeowners insurance. The average annual cost of home insurance is $2,779, well above the $759 average for condominiums. Homes are generally larger than condo units and Owners are responsible for the entire structure. p>
average cost of condo insurance by state
Below, you’ll see how condo insurance costs vary by state, for four levels of coverage. property coverage amounts vary, but all rates have a $1,000 deductible with a $300,000 liability.
North Dakota is the cheapest state for condo insurance with an average cost of $299 per year, while Florida is the most expensive at an average cost of $1,393 per year, according to insurance.com’s 2022 rate analysis.
average cost of condo insurance by company
Just like auto and home insurance, comparing condo insurance quotes from different companies can save you money on your coverage. Each insurance company takes into account where you live, your claims history, and data about the building itself to calculate rates. shopping is the best way to save.
First, let’s look at the average rates in 2022 of the ten largest home insurance companies by market share.
Below is a complete list of all insurance companies surveyed by insurance.com in 2022. These condo insurance rates include $60,000 homeowners coverage with a $1,000 deductible and $300,000 in liability insurance.
Not all of these companies operate in every state, so while west bend mutual has the cheapest condo insurance rates at $134 a year on average (that’s only about $11/mo), it’s only offered in 14 states. The cheapest condo insurance company that operates in all states is allstate at $544/year or $45/month.
Take a look at our full list below.
how much does condo insurance cost per month?
The average monthly cost of condo insurance can be as low as $29 or as high as $134, depending on the state you live in, among other factors. The average monthly cost of condo insurance, based on the median of that range, is $82. You can see the h0-6 insurance costs per month in each state in the chart below.
Here’s the average monthly cost of condo insurance for common coverage levels, all with a $1,000 deductible and $300,000 liability.
how much is condo insurance near me?
To get your personalized average condo insurance cost, enter your zip code, personal property coverage, deductible and liability amounts in the condo insurance calculator below. you’ll get condo insurance estimates so you know what you can expect to pay.
how much does condo insurance cost in california?
The average cost of condo insurance in California is slightly below the national average, with an average rate of $705 per $60,000 in coverage.
Of course, fees vary by company. Take a look at the rates per amount of coverage from some of the largest insurance companies in California. usaa comes in the cheapest, with travelers the cheapest option if you’re not a military family.
The rates below are quoted with a $1,000 deductible and $300,000 liability.
how much does condo insurance cost in florida?
Florida condo insurance is the most expensive in the country, according to insurance.com’s rate analysis. but you can still save by doing a condo insurance quote comparison. You’ll see below that condo owners insurance costs vary significantly between providers.
Here are the average condo insurance costs in Florida by company. The cheapest condo insurance companies in Florida among those surveyed are First Floridian, Castle Key, and Heritage.
Property coverage amounts vary, but all rates have a $1,000 deductible with a $300,000 liability.
the three types of condo insurance coverage
There are three different types of condo insurance, and the main difference comes down to how much of the structure you need to insure. Your condo association’s master insurance policy will likely cover the exterior of your condo, as well as hallways, elevators, pools, and other common items.
Determining exactly what you need to insure, and how much condo insurance you need to buy, are the biggest challenges when shopping for condo insurance.
There are three main types of arrangements that could apply to your condo:
Condo association rules and covenants dictate which of these arrangements apply in your condo community.
If you’re subject to a bare wall arrangement, you need to find the proper documentation that explains what you’re responsible for insuring. Stuart Powell, a longtime insurance expert who teaches courses on insurance and risk management at Appalachian State University’s Walker School of Business in Boone, North Carolina, says these documents must contain wording that ” draw an imaginary line somewhere to separate the owner’s rights.” unit of common property,” Powell says.
The condo association’s master policy will cover the common property, while you are responsible for insuring everything else.
“Ask the condo association for a clear definition of where the unit line is,” Powell says. “If they can’t answer the question, you may need to go to an insurance agent. And if they can’t answer, you may need to go to a lawyer.”
How much insurance do you need for a condo?
If your condo is subject to bare wall rules, assigning a replacement value to the interior can be challenging, because the value of your individual condo is partially based on common features, such as the exterior of the building, as well as a pool and other amenities.
The exact dollar amount of coverage you need also depends on other factors, such as:
If you’re having trouble figuring out how much coverage you need, talk to your insurance agent. powell says it’s always better to buy too much coverage rather than not enough.
Instead of cutting corners on coverage, consider taking a higher deductible, which can lower your premium costs. the deductible is what you pay for damages when you file a claim.
Deductibles apply to the personal property coverage portion of your policy. You generally have a range of deductible amounts to choose from.
actual cash value versus replacement value
A typical mistake condo owners make is to buy coverage that reimburses the actual cash value of their belongings instead of a policy that covers replacement costs. actual cash value generally means your belongings are covered for their replacement cost less depreciation. depreciation is the decrease in an item’s value due to its age, condition, or other factors. Replacement value means your belongings are covered for the amount it would take to replace them at the time of the claim.
loss assessment coverage
This coverage reimburses you if the condominium association charges a special one-time assessment fee to unit owners to cover costs in excess of the association’s master policy coverage limits.
Loss assessment coverage is part of most condo policies, but typically provides only $1,000 in coverage. If this is the case for your policy, Powell urges you to purchase additional coverage. special assessments can sometimes run into the thousands of dollars.
“Most people should buy at least $5,000 or $10,000,” Powell says.
don’t skimp on liability coverage
Most people think condo insurance protects their home and belongings. But condo policies also include liability coverage, which protects you if someone is injured inside your home.
Don’t skimp on this coverage, because you’ll regret it if someone is injured on your property, says Lori Conarton, spokeswoman for the Insurance Alliance of Michigan.
“A lot of times it will be a minor injury,” she says. “But other times, you can be sued and liability insurance will cover you.”
Usually the minimum condominium liability limit is $100,000, but that doesn’t offer much protection in case you end up on the wrong side of a lawsuit. liability coverage can go up to $500,000 and, in extreme cases, even that may not be enough.
Fortunately, there’s an easy way to get even more protection. “Condo owners can also purchase an umbrella insurance policy that provides additional protection of $1 million or more for both their condo insurance and auto insurance,” says Conarton.
Buying a basic policy or even something with medium coverage to save money in the short term can be a risky move in the long run.
“lawsuits can be very expensive,” says conarton. she says the average judgment in slip and fall cases is $100,000, and the average cost to defend a liability claim is $50,000.
If someone is seriously injured or even killed, the judgments could be much higher.
“Without liability insurance, the results of a lawsuit could be financially devastating to you,” says Conarton.
how to get a condo insurance quote
To get an idea of what you can expect to pay, first find out how much condo coverage you need. These are the steps to follow to obtain an estimate of the cost of insurance h0-6.
review the main policy of the condominium association. this will influence the amount of construction property coverage you need. You can get details about your master policy from the condominium association. There are three types of master policies, as explained above.
If you have all-inclusive coverage in your master policy, you do not need building property coverage.
If you have a bare wall or special entity policy, in addition to the above, you must also add building property coverage. this covers cabinetry, lighting, bathroom and kitchen features, carpeting, laundry facilities, etc. These are common scenarios that will help you calculate the amount of coverage for your building:
Review the condo insurance rate charts and cost calculator. Now that you have an idea of how much coverage you need, review the various rate charts on this page, which show the average cost of condo insurance by month, state and level of coverage. You can also enter your zip code into our condo insurance cost estimator tool, which shows the average rates as well as the highest and lowest for up to six major insurance companies. These rates assume all-inclusive master policies.
things to consider before buying insurance h0-6
Insuring a condominium is often more complicated than protecting a single-family home. Knowing the types of ho-6 insurance and what they cover can help you determine how much insurance to buy. for more details, see insurance.com’s condo insurance guide for more details.
“It can be quite confusing, even for people in the industry,” Powell says. “Despite the challenges, shopping for condo insurance can be made simpler by using this checklist”:
Condo insurance rate data was provided in 2022 to insurance.com using quadrant data solutions based on four possible levels of coverage for personal property: $40,000, $60,000, $80,000, and $100,000. all Estimates use a $1,000 deductible and include $300,000 in liability coverage. rates by state and for insurance companies are averages. national averages are based on all available zip codes and coverage levels.